Dear FutureMoneyTrends.com Subscriber,
I want to discuss 3 undeniable trends that you have to not only be aware of, but you need to plan your financial life around them. We will spend the next 4 weeks discussing them and I want to include you in the conversation. Please review this short summary of what we will be discussing over the next 3 weeks starting next Wednesday, if you have a personal story to share or question, please email us by replying to this email and I will do my best to direct our conversation to your concern.
Before I get into this important review on the 3 biggest trends than will directly affect your life, please visit our blog everyday for daily updates, we seek out only the best and most relevant articles to share with our members. If you are busy, I believe this is the perfect blog for you; we post 1 to 2 articles per day that are must reads. Also, if you are not a paid member yet, please consider one of our wealth building packages, it’s under $1.00 per day, less than what you spend for a cup of coffee.
3 Undeniable Trends that Will Absolutely Affect Your Life and Those You Love
- Destruction of America’s Middle Class
- Peak Sovereign Debt
I know we have discussed each of these trends before, but I was really reflecting on just how important they are for each of us to always keep in mind in every financial decision we make. Being with my children, 3 year old son and 1 year old daughter, the future is something I think about a lot. What do I as a father need to teach them to prepare them for the future? They need the right education because today’s conventional wisdom will be history by the time they are teenagers.
Planning for the future… Do you know that nearly 100 million people in the U.S. are on some sort of welfare? That is 1 in 3 Americans (including children). This trend of government dependence comes from our educational system, we have all been taught to seek out government aid, that the government is there to help and that its authority is righteous. Well today we have a big problem because our laws, regulations, and dependency education are destroying our middle class. This isn’t a political statement, it just is what it is.
The U.S. annual deficit is so bad that even if we cut all of government, except for our entitlements like social security and medicare, we would still run a deficit. That’s right, even if you cut the entire military, congress, and all other federal workers, we would still be running a deficit. Detroit is America’s future, if you really want to get ahead, look at Detroit’s economy, what has thrived during this city’s 15 year depression…This is one of the things we will be analyzing in week 3 of this special trend update. Will there be deflation or inflation, or both? Our view is ultimately we have a currency crisis, but prior to it, we could see a deflationary shock to the system as defaults from state and local governments spread over the next 5 years. Detroit is just the tip of the iceberg, we are literally living through the bursting of the debt bubble that has been growing since the 1940’s! Preparing for this is important, but you need to think long term, and that’s what we will do.
Lastly we will discuss globalization, you often hear people complain about emerging markets stealing jobs from Americans since they charge less for the same services; however it is not all bad, if you look at the worldwide customers businesses have available today. We should also point out that many businesses are thriving, take Coca Cola for example, 70% of sales come from overseas, and Coke is about as American as you can get. We need to profit from this trend, there is no fighting it, this is the one trend that is overwhelming due to communication around the world being easier than ever. This trend is typically hated, but it is hated because people are hanging onto the past. If you think you have a right to some high paying job out of school, then you have a big surprise coming; however if you look at the access you have to available people to work or buy your products, the opportunity is global.
I will also point out with macro economic data and demographics that these emerging markets are NOT about to host a world reserve currency or even an ‘American’ type middle class in our lifetimes. This doesn’t mean they won’t grow, but it is more likely that the U.S. remains a dominant power, even if it is just a shadow of its glory days, the emerging markets have a lot of catching up to do in education and incomes. The west for all its faults, dominates the world in new technology, which will continue to drive economies.
I look forward to helping you plan for the future.
Share Disclosure: I am long Coca Cola (KO).